KUALA LUMPUR (Nov 5): Fraser & Neave Holdings Bhd (KL:F&N) reported an 18.2% increase in net profit to RM135.05 million for its fourth financial quarter, from RM114.29 million a year earlier, mainly due to lower tax expenses.

Revenue for the quarter ended Sept 30, 2026 (4QFY2026) was down 3.1% to RM1.19 billion from RM1.23 billion, dragged by weaker sales to Cambodia amid ongoing border closures and unfavourable foreign exchange movements.

The group proposed a final dividend of 30 sen per share, compared with 35 sen a year earlier, bringing the total dividend for FY2026 to 60 sen per share.

F&N said its quarterly operating profit remained largely unchanged, helped by a RM90.5 million gain from the disposal of its stake in Vacaron Company Sdn Bhd.

The gain helped offset higher costs at its F&N AgriValley dairy operations and weaker performance in its Indochina business.

For the full financial year, F&N's net profit fell 14% to RM437.09 million from RM508.47 million in FY2025, while revenue declined 5.3% to RM4.92 billion from RM5.20 billion.

The weaker performance was mainly due to higher costs from its new investments, continued sales disruptions in Cambodia and unfavourable currency movements, the group said.

Its Malaysian business recorded stronger sales of beverages, water and dairy products, although higher costs at AgriValley weighed on earnings.

Meanwhile, its Indochina business was affected by border closures, weaker consumer demand and slower tourism activity in Thailand.

F&N chief executive officer Tarang Gupta said the group's core businesses in Malaysia and Thailand remained resilient despite challenging market conditions.

"While the costs associated with these investments have weighed on our profitability in the near term, we believe they will strengthen our operational resilience and support sustainable growth in the years ahead," he said.

F&N said its AgriValley dairy operations achieved milk yields of 30 litres per cow per day, three times the Malaysian industry average.

The group also began producing Gold Coin sweetened creamer at its new manufacturing facility in Cambodia in October as part of efforts to strengthen its presence in the market.

Looking ahead, F&N said it would focus on improving efficiency at AgriValley while gradually increasing production and expanding distribution in Cambodia.

F&N shares closed up 26 sen or 1.24% at RM21.22 on Thursday, valuing the group at RM7.78 billion.